, the MicroStrategy executive chair, recently resigned as CEO. He shared a lengthy tweet on Wednesday detailing seven of his “high-level thoughts” about Bitcoin mining and its effects on the environment.
Michael Saylor (@saylor).
September 14, 2022
He was adamant that PoW BTC mining wasn’t efficient in terms of energy.
Saylor claims that it is the most efficient industrial use of electricity, and is increasing its energy efficiency at a faster rate than any other major industry.
He supported his argument with figures from the Q2 Global Bitcoin Data Mining Review, published by the Bitcoin Mining Council in July. This review is a compilation of 45 companies who claim to account for 50.5% of global network.
Our metrics show that 59.5% of the energy used for bitcoin mining is from renewable sources, and that energy efficiency has improved by 46% YoY.
Saylor’s argument is made as the BTC mining sector has come under a lot of scrutiny over its potential impact on the environment. This has even led certain states to take steps to ban crypto mining.
Saylor asserts that continuous improvements to the network, and “relentless improvement of the semiconductors” make mining much more efficient than large tech companies like Google, Netflix, or Facebook.
Saylor stated that approximately $4-5 billion of electricity is used to secure a network worth $420 billion.
This makes Bitcoin much less energy-intensive than Google, Netflix, and Facebook and about 1-2 orders of magnitude more energy-intensive than traditional 20th century industries such as logistics, aviation, hospitality, and logistics.
Saylor claimed that 99.92% global carbon emissions are caused by industrial energy uses other than mining bitcoins.
According to the numbers, Saylor doesn’t believe that environmentalist arguments against PoW mining are fair.
He believes it is a deliberate attempt to focus negative attention on Proof-of-Work mining and distract authorities away from the “inconvenient fact that Proof-of-Stake assets are generally not registered securities trading on unregulated Exchanges.”
Ripple is currently involved in a high-profile legal case for allegedly selling unregistered securities in Ripple’s XRP.
Saylor concludes by stating that all of the negative reactions to PoW mining distract from the potential benefits for the rest of the world.
“Bitcoin mining is a modern, clean and profitable industry that can generate hard currency to remote areas in the developing world. It’s only possible through a satellite link.”